Alhaji Aliko Dangote, President of the Dangote Group, has announced a significant expansion of the storage capacity of his refinery by an additional 600 million litres. This expansion will bring the total storage capacity to 5.3 billion litres, up from the current 4.78 billion litres.
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Speaking at the Afreximbank Annual Meetings and AfriCaribbean Trade & Investment Forum in Nassau, The Bahamas, Dangote revealed that international oil companies have been reluctant to sell crude oil to his refinery, fearing its potential success. Despite this, Dangote remains committed to his vision.
When asked about the potential impact of his refinery on petrol prices, Dangote did not provide a definitive answer but shared a related success story. He noted that when his diesel entered the market, prices dropped significantly from N1,700 to N1,200. This suggests a possible positive impact on petrol prices once the refinery is fully operational.
Dangote emphasized the strategic importance of the refinery, highlighting its role as a reserve for refined products. He pointed out the lack of strategic reserves for petrol in Nigeria, which his refinery aims to address.
The billionaire also spoke on the challenges posed by international oil companies, who doubted the feasibility of his 650,000 barrels per day capacity refinery. He acknowledged the resistance from these companies but expressed confidence in overcoming these obstacles.
Additionally, Dangote criticized the importation of low-quality, high-sulfur fuel into Nigeria, which he linked to rising cancer cases. He urged the Federal Government to enforce regulations against the importation of such fuels to protect public health.
Dangote is optimistic that once the refinery begins full operations, Nigeria will no longer need to import fuel. He also plans to supply affordable fuel to the Caribbean, aiming to set up a terminal in the region to provide cheaper energy, which he believes will spur economic growth.
Reflecting on his journey, Dangote mentioned an encounter with former Saudi Energy Minister Khalid Al-Falih, who advised against building the refinery. Dangote, however, decided to pursue his vision, underscoring his commitment to transforming the energy sector.
This strategic expansion and operational commencement are poised to significantly impact Nigeria’s fuel market and potentially provide economic benefits to regions beyond Africa.
